GE is looking to partner, spin off or possibly sell operations which primarily produce diesel-powered locomotives and railroad equipment, the sources said in the report. The business is one of the industrial conglomerate's oldest and reported $4.7 billion in revenue last year.

The move is a major part of new CEO John Flannery's two-year plan to divest assets worth more than $20 billion, sources told the Journal.

Reuters also reported the company is "exploring" selling its healthcare information technology business, which includes such brands as API Healthcare and Centricity EMR, according to people familiar with the matter.

Separately, PE Hub's Buyouts Magazine reported Thursday, citing sources, that GE has hired Morgan Stanley to explore the sale of that healthcare IT division. Marketing materials have already been distributed to some potential suitors, the sources told the news organization.

Morgan Stanley declined to comment to CNBC.

The market didn't seem to react much to the reports. Shares of GE closed 0.8 percent lower.

GE declined to comment to CNBC.

Flannery took over the company this summer after leading the health care division. The head of GE Transportation, Jamie Miller, is set to become the company's chief financial officer on November 1. The company unexpectedly announced earlier this month its current CFO, Jeffrey Bornstein, will leave GE on Dec. 31.